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Legal Ease
Legal Ease, Lawyer
Category: Canada Law
Satisfied Customers: 85226
Experience:  Lawyer
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Can I sell my condo to a buyer that I found on my own while

Customer Question

Can I sell my condo to a buyer that I found on my own while being still under contract with Realtor? I'm prepared to still pay all applicable commission but complete the transaction without Realtor's involvement at the lawyer's office since I can no longer trust my Realtor after we caught him in a very serious web of lies over the past month. By the way, I do not currently have any signed offers with my Realtor.
Submitted: 1 year ago.
Category: Canada Law
Expert:  davidhken replied 1 year ago.
DearCustomer- So long as you are prepared to pay the commission you do not have to involve the Realtor. You may want to notify the Realtor so you don't get into a situation where there is a full offer made and you already have a deal. You can simply tell the Realtor to cease all sales activity. If he has an exclusive listing then he will be due the commission for any sale during the listing period but you are not required to have him involved. He will probably want to either attend the closing or have some assurance of being paid from the proceeds. If the Realtor has committed fraud or done something unethical you may be able to cancel the listing for breach of contract and not have to pay any commission. I'm not certain of what it was that happened but you can take the position that the listing agreement was breached and therefor you do no owe any commission.
Customer: replied 1 year ago.

Thanks for the answer, if I understood you correctly as long as I'm willing to contact the brokerage voluntarily on closing day and authorize my lawyer to disperse the commission percentage indicated on your signed Listing Agreement, then there is no reason for me to involve my Realtor at all and by bypassing Realtor I will not be breaking any laws, right?


 


I just have one follow up, once the buyer signs the offer with me privately, can he make a deposit by a certified cheque payable to my name or it has to be made payable to my lawyers name (in trust) whom I may not have at the time of the deposit?


 


What is the best work around pertaining to the private deposit without involving the lawyer at that point of the process yet? After all, the buyer will still have get approved for the mortgage, yet, I want to have the peace of mind that the buyer is committed to the acquisition of my property!


I really appreciate you going the extra mile!

Expert:  davidhken replied 1 year ago.
You are not breaking any laws by selling the property without the Realtor as it happens all the time. The commission is all the Realtor cares about. I see no reason why the deposit cannot be made to you but the buyer may not want to do that so you may have to have an escrow through your lawyer. I can't predict what the buyer may do so I can't answer that question. If you are going to use a lawyer I'm quite certain the lawyer can guide you through the process as to the various details involved in the contract and the deposit etc.
Customer: replied 1 year ago.

Thanks for being extra kind to me here, I will gladly accept your answer right after this final follow up.


Are you aware by any chance whether everything that you have stated above will be applicable and valid in Ontario, Canada as well?


 


Perhaps in your long years or experience you had some exposure to Canadian laws pertaining to the questions that I asked. Any guidance would be greatly appreciated especially pertaining to my very first question that dealt with bypassing the Realtor in the transaction.


 


Thanks a lot!

Expert:  davidhken replied 1 year ago.
Sorry but you posted this in the US section so I didn't know you were in Canada and I will have to opt out and refer this to a Canadian lawyer. sorry for any confusion but I have no knowledge of Canadian law. Please do not accept my answer or give a rating until you hear from a a Canadian lawyer.
Customer: replied 1 year ago.

Thanks for your kindness, I don't mind accepting your answer. However, if you insist, please kindly post this question under Canada Law section ASAP. Thanks.

Expert:  Legal Ease replied 1 year ago.
This applies in Ontario as well.

You do not need the realtor involved but so long as the realtor has not breached the contract you do have to honour your obligations to the realtor.

My only concern is that you don't have the training the realtor does or a lawyer does so I would suggest you retain a lawyer now and have the lawyer review the offer before you sign it.

Let me know if you need further clarification.
Customer: replied 1 year ago.

By stating the following: "You do not need the realtor involved but so long as the realtor has not breached the contract you do have to honour your obligations to the realtor."


Are you referring to my obligation to follow through with the payment of commission at closing?


 


And even though I may still be under the Listing Agreement with a Realtor, there's no law that will prevent me from handling the entire transaction without her involvement and even her knowledge about it as long as once the sale is complete, the realtor's brokerage is made aware of the sale and the lawyer will offer to disperse the agreed commission to it, am I correct?


 


I have a lot of Realtors among our relatives, so they would be able to give me the necessary guidance along the way but we chose that particular Realtor mainly because we purchased this condo from her about 7 years ago and she specializes in that particular niche of condos that we have but it turned out to be a very unfortunate decision.


 


 


 

Expert:  Legal Ease replied 1 year ago.
Yes I was talking about the commission.

You do not need to involve the agent. So long as you pay her what she is entitled to you will be OK.
Customer: replied 1 year ago.

Thanks :) And in case I will not have a lawyer by the time a private buyer will be willing to sign an offer and leave me his or her deposit, will it be acceptable to ask for a certified cheque made payable to the seller’s name and have the signed offer reflect the receipt of such deposit? If yes, do I simply hold on to it and bring it with me to the lawyer or deposit in the bank and bring my own cheque in place of the one that the buyer has given me?

Expert:  Legal Ease replied 1 year ago.
If they buyer is content with giving you the cheque then you should deposit it.

There is no actual requirement that a lawyer hold onto the cheque.

But the buyer may be concerned about giving you a cheque that is not held in trust.

It would be simpler all around to quickly get a lawyer.

You can contact the Law Society and use their Lawyer Referral Service. You will be given the name of a lawyer and can consult with the lawyer and the first half hour will be free.

The number is:

1-800-268-8326 or(NNN) NNN-NNNN(within the GTA)
Legal Ease, Lawyer
Category: Canada Law
Satisfied Customers: 85226
Experience: Lawyer
Legal Ease and other Canada Law Specialists are ready to help you
Expert:  Legal Ease replied 1 year ago.
Thanks very much for the rating.

Please take the time to participate in the customer satisfaction survey as that will go into my record with the site.You will be sent an email with the survey in a couple of days.

And feel free to keep my name in case you need me again down the road. You can always put my name into the subject line the next time you post so that your question will stand out for me and I will answer it just as soon as I can.

Thanks and take good care!

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